Peking “long arm”

Soviet specialists helped the Chinese develop nuclear weapons. From 1950 to 1960, China was visited by about ten thousand workers of the nuclear industry of the USSR. However, in the following years, relations between the two States deteriorated, and the Soviet Union curtailed the aid program.

Nevertheless, China quickly figured out what was what, and made an atomic bomb on their own. A year after the first ground test, the Chinese dropped the warhead from the plane, and in June 1967, they detonated a hydrogen bomb with a capacity of 3.3 megatons. Thus, China became the world’s fourth nuclear power after the USSR, the United States and England.

Today, Peking has a full-fledged “triad” – weapons of mass destruction, deployed on air, land and sea carriers. In may, the Pentagon published a report on the strategic potential and military development of China for 2019: according to these estimates, China has about 90 Intercontinental ballistic missiles — both mine (“Dongfeng-4” and “Dongfeng-5A”), and deployed on mobile chassis (“Dongfeng-31”, “Dongfeng-31A”), as well as the latest” Dongfeng-41 ” — they were first demonstrated at a military parade in Beijing on October 1.

In fact, the DF-41 is the most advanced weapon in the Arsenal of the 2nd artillery corps of the people’s liberation army (PLA). This solid-fuel Intercontinental ballistic missile throws from ten to 12 nuclear warheads individual guidance at a range of about 14 thousand kilometers. Thus, the DF-41 can be called one of the most long-range ICBMs in the world, capable of hitting targets throughout the continental United States.

According to Pentagon analysts, China’s nuclear Arsenal has grown significantly in recent years. As noted in early October, the American edition of Military Watch, the escalation of tensions between Peking and Washington is pushing China to create more effective systems for the delivery of weapons of mass destruction.

Sea and air carriers

ON CHINA’S LONG JOURNEY

According to a report by the Military Balance of the International Institute for strategic studies (IISS), the Maritime component of China’s nuclear deterrent force is represented by four nuclear submarines of the Jin project (Type-094). Each of them carries 12 ballistic missiles of the type “Juilan-2” with a range of eight to nine thousand kilometers, created on the basis of land-based DF-31. In the media, there was information about the laying of the fifth and sixth nuclear-powered vessels, so that in the near future the number of SLBMs at the disposal of the Chinese Armed forces may increase to 72 units.

Now China is developing a new generation of strategic submarines “Type-096”, the construction of which is planned to be launched in the 2020s. Specially for them will create a new family of ballistic missiles “Juilan-3” with a range of up to 12 thousand kilometers and a dividing head part of the individual guidance. On June 2, 2019, US intelligence reported that the Chinese had successfully tested a new weapon in Bohaiwan Bay (the northwestern part of the Yellow sea).

In September 2016, Beijing officially confirmed the development of a new generation strategic bomber Xian H-20. This subsonic low-visibility aircraft will be built according to the “flying wing” scheme, as, for example, its American counterpart B-2. Range-at least eight thousand kilometers, the mass of the payload in the internal compartments – up to ten tons. According to us analysts, the H-20 will be ready to take wing after 2025.

It is assumed that the new aircraft will replace the troops aging fleet of strategic bombers H-6-licensed copies of the Soviet Tu-16. The PLA air force and Navy have 170 vehicles of this type in various versions. Depending on the modification, the H-6 can carry up to nine tons of bombs, including thermonuclear, air — to — surface and air-to-ship cruise missiles. Experts call the carrier of weapons of mass destruction, in particular, the latest version of the H-6K bomber, adopted in 2011. The PLA has about 90 such vehicles at its disposal. The range of these aircraft is three thousand kilometers.

The H-6K carries up to 12 tons of payload, including new CJ-10K cruise missiles that can be equipped with nuclear warheads. They reach speeds of up to 1,000 kilometers per hour and hit targets at a distance of up to 1,500 kilometers from the launch point. Thus, the PLA air force can strike at any object on the Korean Peninsula, and H-6K, based in the military district of the city of Guangzhou, can reach the American island of GUAM.

CHINA: WHY THE NEW CENTER OF THE WORLD DOES NOT NEED ANYONE

For every taste

In addition, according to American experts, China has an impressive Arsenal of intermediate-range ballistic missiles “Dongfeng-26” – up to 80 units. They are able to throw a nuclear warhead at 3000-5500 kilometers. In non-nuclear equipment, these missiles can be used to destroy large surface ships, for which the Western press has nicknamed them “carrier killers”.

The most numerous is the Chinese Arsenal of medium-and short-range weapons. The first include four versions of the DF-21A, DF-21C, DF-21D and DF-21E missiles-about 150 launchers in total. China has no more than fifty carriers of DF-21A and DF-21E nuclear warheads. There are several hundred short-range missiles (DF-11, DF-15 and DF-16), but they cannot throw a nuclear warhead. According to experts, it is the presence of China’s impressive number of medium-and short-range missiles that caused the us to withdraw from the Treaty on the elimination of these types of weapons.

China is consistently upgrading its Arsenal

In particular, the parade in Beijing for the first time demonstrated a medium-range ballistic missile DF-17, designed to bring to the height of the hypersonic combat unit DF-ZF in nuclear or conventional equipment. This glider, which is similar in purpose to the Russian development “Avangard”, is able to accelerate to five Mach numbers and actively maneuver on the trajectory, which makes it difficult to intercept missile defense systems.

The post HOW PEKING IS PREPARING FOR A BIG WAR first appeared on Global Policy.

1. Inviolability of socialism with Chinese specifics

During its new history, China has experienced internal turmoil and external aggression, times of weakness of the state and poverty of the people.

In order to find a way to strengthen the country and raise the living standards of the people, several generations of Chinese have tried all kinds of development models.

Capitalism failed; reformism, liberalism, social Darwinism, anarchism, practicalism, and populism followed one another. But all of them have not solved the issues of prospects and fate of China. The inevitability of history and the choice of the people eventually led to the fact that socialism with Chinese characteristics took root in China.

Socialism with Chinese characteristics is neither the socialism of the early nineteenth century or the Soviet socialism of the XX century. It is the result of the unification of the basic principles of Marxism with the realities of China and the peculiarities of modernity. Socialism with Chinese characteristics combines its own search experience of other countries, the system of public ownership with a variety of non-state forms of property, market economy with state regulation, the principle of “economic construction at centre” with the concept of “human Foundation,” the prospects and destiny of China with the prospects and destiny of all countries of the world. It was the path of socialism with Chinese specifics that transformed China from a poor and backward country into the current second economy of the world.

The Chinese say: “Shoes comfortable or not, knows only itself foot.” We hope that each state will be able — in accordance with the real situation in the country — to find the most acceptable way of development for itself, and not blindly copy the development models of other countries.

2. Inviolability of the unified leadership of the Communist party of China

2019 marks the 98th anniversary of the CPC, as well as the 70th anniversary of its governance as the ruling party. It is no accident that the CPC, as the world’s largest political party (it has more than 90 million members), was able to stand firm and gain the broad support of the Chinese people.

The Communist party of China is a party that nurtures talent professionally. The ancient Greek philosopher Plato believed that the “ideal state” – a state that is through continuous cultivation, selection and training of the ruling class and can implement management. The Chinese in ancient times continuously tried to find the key to the management of the state-the examination system of selection of officials keju conducted for many centuries. Regardless of their background, anyone could be selected and enter the management service by passing an exam. The CPC focuses on the admission of ordinary people to the party, with the aim of cultivating talents for governing the state. And this, in turn, allowed the CPC to continue its dynamic development a hundred years later.

HOW CHINA INTENDS TO GET AHEAD OF THE WEST

The Communist party of China is a party that masterfully develops and implements strategic objectives. We are able to adopt a long-term strategy and effectively implement it. In the 70 years since the formation of the New China, the CPC has painstakingly developed and confidently implemented thirteen five-year plans. Scientific planning and resolute implementation, as well as the advantages that the principle of concentration of forces for the implementation of great deeds gives, ensured the long-term and stable growth of the Chinese economy, helped to implement such large-scale projects as manned space exploration, deep-sea measurements, high-speed railway, etc.

The Communist party of China is a party that boldly conducts self-purification. From the very first day of its existence, the party has made every effort to create and improve the mechanism for monitoring the activities of its members and their powers. In particular, over the past six years, after the 18th party Congress, we, showing absolute tolerance for the facts of decomposition in the party, are fighting hard against corruption. And this struggle was crowned with such brilliant results that such can rarely be found in the world.

3. Inviolability of the concept of governance, where the Central place is given to the people

Several generations of Chinese leaders have consistently adhered to the principle of “standing with the people and achieving benefits for the people.”

At the very beginning of the formation of a New China on the outer wall of the gate Zhongnanhai (seat of the government of China) Mao Zedong personally wrote: “to Serve the people.” Deng Xiaoping said, ” I am the son of the Chinese people.” And XI Jinping stresses: “to Give the people a good life is the starting point and the ultimate goal of all our work.”

One of the main embodiments of the principle of “the people — above all” is to address the issue of poverty. In 1949, the poor population in China reached 40% of the world. The new China is constantly at war with poverty. The two hundred-year goals we put forward are as follows: the first is to build a middle — class society (xiaokan) by the centenary of the party’s founding, the second is to carry out modernization by the centenary of the PRC’s formation in 2049.

In more than 40 years of reform and openness, we have established a plan to eradicate poverty with even higher standards than those of the United Nations. It is estimated that 740 million people were lifted out of poverty, making China the first developing country in the world to achieve the UN Millennium development goal and whose contribution to reducing poverty at the global level exceeded 70%.

Next year, China will achieve the goal of building a xiaokan society — for the first time in thousands of years of history, extreme poverty among the population will be eliminated.

4. Inviolability of the policy of stability and cohesion

More than 2000 years ago, the ancient Chinese philosopher Lao Tzu said: “Running a country is like cooking small fish. Importantly less hinder.” The meaning of this statement is that the way of government is the stability and consistency of the course.

The history of China knows four big splits and twelve large-scale changes of feudal dynasties. And many-significant and not very-military troubles and not to count. Each time, major upheavals and major splits have led to economic downturns, driving people to extremes.

However, the history of China is marked by many eras of prosperity, when the state lived quietly and peacefully, and the people enjoyed prosperity and abundance. During the existence of the New China, except for certain periods, in General, we have maintained a situation of stability and cohesion — it is consistent social stability, peaceful and calm life of ordinary people, making the most of the “dividends”received as a result of development.

So in China, so in the world. After years of military disasters, Europe learned from the past and created the European Union, bringing peace and prosperity to millions of Europeans, which has been going on for almost 70 years. East Asia has also long maintained peace and stability, thus creating the economic miracle of East Asia. And the political situation in the middle East, which has always been rich and prosperous, has shaken considerably in recent years — again and again there is chaos caused by the war, which leads to the decline of the economy and to the deterioration of the welfare of the peoples of many countries in the region.

5. Inviolability of the political strategy of reforms and openness

If we look back at China’s centuries-old history, we will see that only with openness and inclusiveness can progress be made, and that closure and isolation inevitably lead only to regression.

During the Han and Tang dynasties, China’s state policy was radically changed, contacts with other countries became more frequent, and the economy occupied a leading position in the world. During the Ming and Qing dynasties, China pursued a policy of self-isolation, blindly shutting itself off from the outside world, as a result of which the state power was sharply shaken.

After the formation of The new China, we are in a continuous search for ways to build socialism. In 1978, we made a historically significant strategic decision to pursue a policy of reform and openness. We implemented reforms and policies of external openness, which created an unprecedented economic miracle in China. Over 40 years, China’s GDP rose from $ 216.8 billion in 1978 to 13.6 trillion. in 2018, and its share of global GDP rose from 1.8% to 16%. Thus, GDP per capita increased from 155 dollars to almost 10 thousand us dollars.

China’s policy of reform and openness has not only strengthened us, but has also benefited all countries of the world. In recent years, the average contribution of China to the world economy was 30%, exceeding the overall performance of the United States, the Eurozone and Japan combined. And this has allowed China to become the most important driver of global economic growth. China’s total imports and exports rose from an initial $ 20.6 billion to more than $ 4 trillion. dollars’.

In the end, we attracted foreign direct investment in the amount of 2 trillion. they invested 1.9 trillion dollars abroad. USD. China will continue to deepen reforms and expand the horizons of openness, remaining a “world factory” and becoming a “world market”. The fact that China will become the world’s largest consumer market is a matter of the near future. We will continue to reduce taxes, open our own market more widely, import more competitive agro-and finished products, as well as high-quality services, contributing to the balanced development of trade.

6. Inviolability of the principle of independent and independent foreign policy

China once drank the bitter Cup of humiliation when it was forced by the major powers to sign one unequal Treaty after another. It is for this reason that after the formation of the new China, we appreciate the peace, which is given so hard, we appreciate the sovereignty and independence of the country even more.

China’s independent and self-reliant foreign policy is mainly expressed in three aspects. The first is independence from any major state or Union of States, refusal to be anyone’s vassal. The second is non-interference in the internal politics of other countries. China has never considered itself as a God-chosen people, on the contrary, it has always been an equal citizen of the world community. Third, China seeks to establish and develop friendly relations with all countries, despite their ideology and political system.

7. Inviolability of the basic principles of peaceful development

Peace is the dream to which humanity has long aspired. The ancient Greeks said that ” peace is the interval between wars.” Confucianism in China adheres to the concept of ” peace and harmony — the highest value.” 2000 years ago the ancient silk road brought silk, porcelain and tea to different countries. After the formation of the new China, whether it is the initiation of the five principles of peaceful coexistence or the implementation of a policy under the slogan “Peace, development, cooperation and common benefit” — the main thing is peace.

China has always actively sought world peace. In 70 years, China has never occupied any state, never colonized any territory. The so — called “Chinese threat” is pure fiction and false judgments. After the end of the Second world war, individual countries from year to year warmed the hope of unleashing war, everywhere waving a baton. But can these countries — along with the alleged spread of the “Chinese threat” — as well as China, openly speak out and say that no matter how the international situation changes and how its own state power develops, the country will not claim hegemony, will not pursue a policy of expansion and will not seek to seize this or that sphere of influence?

China has always been a strong advocate of world peace. Since 1990, taking part in UN peacekeeping operations, China has sent almost 40,000 people to participate in peacekeeping missions, becoming the state that provides the largest number of peacekeepers among the Permanent members of the UN Security Council.

China is doing its utmost to promote world peace. China will continue to take an active part in resolving acute regional issues, inclining all parties to resolve issues through dialogue rather than military intervention.

8. Inviolability of the concept of cooperation based on mutual benefit and mutual benefit

“One flower does not make spring.” In today’s world, the peoples of all countries live in one “global village”, becoming increasingly inseparable. China breathes in unison with the world, sharing the same fate. China wishes to join the international community in building a community of common destiny for humanity and to make an even greater contribution to world peace and human progress. We launched the belt and road initiative with the hope of uniting with all countries of the world to share the dividends of development.

The post ON CHINA’S LONG ROAD TO WORLD DOMINATION first appeared on Global Policy.

However, on closer examination, the event highlighted two extremely important points. First, such a direct formulation is usually not peculiar to Chinese diplomacy. The culture of the middle Kingdom, as well as traditions, especially business, and especially public and official communication in Pakistan are based on allegories, hints and very soft streamlined formulations. To clear specifics it comes only when very much pressed. Secondly, it turned out that some key indicators of the strategic project “Belt and Road” do not stand the test of practice.

Pakistan has become a key partner of China in Asia is not accidental

And not even because China is very large and rich. As one of the poorest countries in the region, Pakistan had been seeking economic growth for many years. In the life of their choice are usually small. It is possible to develop only at the expense of market capacity, internal or external. For beginners, the internal volumes are usually small and do not allow to start rapidly.

All successful projects of the past years, from Japan and South Korea to Western Europe, Malaysia, Singapore and even China itself, were implemented in the same way. At the heart of success lies the opening of access to the rich domestic consumer market of some of the grants, plus their investment in the development of local industries.

Plants are built on investments, the products of which are sold profitably on the foreign market, providing an opportunity for themselves to spread caviar on sandwiches, and return the money invested, and improve the economic way of life, and raise the prosperity of their own population, thereby expanding domestic demand, increasing the pace of economic growth.

For a number of reasons, Islamabad was seriously late for the start

European and American markets were overcrowded. Of all the options, only China remained, also demonstrating a desire to “be friends with houses” and give money “without political conditions”, which strongly distinguished its investments from Western ones, always associated with serious interference in internal Affairs.

This is how the China-Pakistan economic corridor (CPEC) project, which is part of the global Belt and Road plan, emerged. Beijing announced its readiness to invest 62 billion dollars, which for a country with its own GDP for 2012 in 214 billion looked fantastic. And it would be fine if the money itself, the calculations promised not just new roads, bridges and expansion of ports, there was an opportunity to raise the rate of economic growth from the then 4.5−5 to 8-9% per year. The difference in” three percentage points ” provided additional income, which allowed to repay loans while maintaining the process of economic development.

More accurately, must was provide, but, as it turned out, not secured. At the moment, Chinese companies have already invested about 55 billion dollars. The flagship of the cooperation is Gwadar port (the opening ceremony took place in 2016) and the first in Pakistan orange line metro line in Lahore, which is scheduled to open in March 2019.

This is not counting a few power plants, Railways and highways, bridges, water treatment plants and other infrastructure. All this is excellent, but the growth of the promised additional “three percentage points” has not led.

China has built only the transport infrastructure, for which the capacity of the domestic Pakistan economy was absolutely insufficient. Yes, in General, this was not planned. According to the CPEC, the flow of Chinese goods to Europe and Africa was supposed to flow, but by now the external conditions have changed greatly in relation to how they looked in 2002-2004, when the idea of a “Belt and Road” was just being formed.

The Sino-American economic war began a decade and a half earlier than expected

The closure of the us market and sanctions have significantly lowered demand in Europe, and even forced the celestial Empire on the move to adjust the project in the direction of construction, especially of the Asian economic space, and at a much higher rate. According to the initial plan, this stage was not to begin until 2030.

Judging by what is happening, in the project “Belt and Road” there was a serious misalignment, the consequences of which are beginning to appear publicly now. Instead of the growth of mutual trade and export revenues, Pakistan and China began to increase the trade deficit. More precisely, the foreign trade deficit as a whole, 2/3 of which are in China.

If for 2012-2015 the volume of Pakistan exports to China increased by 77%, the trade deficit with it almost doubled, from 9.3 to 16.5 billion dollars., and by the end of 2017 it reached 20 billion with China’s share in the country’s exports is 8%, while in a much poorer Afghanistan — 7%, as much as in Germany.

At the same time, the external debt of Islamabad reached 33.1 billion dollars, 57.4% of which is also accounted for by China. Already in 2015, the government of the country gave the company China Overseas Port Holding for rent for 43 years, not only the port of Gwadar, but the right to create a free economic zone around it. Under the agreement, Beijing takes 91% of all revenues of the port and 85% of the revenues of the “free zone”. The press mentions a number of similar, in fact, transactions “to repay the debt” for other key objects.

However, this is not something out of the ordinary. Similarly, for debts Beijing took Sri Lanka they also built the Hambantota port. 99-year lease. With the right to deduct in their favor almost all revenue from economic activities. At the same time, out of 48.3 billion dollars of the “Chinese” debt of Sri Lanka, the agreement “closed” only 1.1 billion.

As a result of these processes, Pakistan is at an impasse. Instead of increasing revenues, participation in the CPEC turns on the contrary to their reduction and growth of debt. Yes, actually loans Red dragon provides very cheap, much lower than the world market, but it allows them to invest only in infrastructure facilities under local government guarantees. For example, a loan for the construction of a power plant costs 3.7−4.3% per annum, but at the same time the government of Pakistan guarantees the investor a subsequent income of 34% per annum for 30 years. There was a situation that has no easy way out.

On the one hand, China is eager to invest at least another 12 “planned” billion dollars in the Pakistani economy, and, according to some reports, more (up to 20-24 billion), but it can not, because there is nowhere. In this small country, all serious and profitable already “Spud”. The potential for increasing food production for export to China is small. No, the demand for it is huge, but the problem lies in the lack of fertile soils and even greater lack of water for irrigation. If the second is still somehow possible to solve, the first-no. The Chinese need, first of all, cheap food, because the Israeli technology of vertical hydroponic farms does not suit them.

On the other hand, the authorities of Islamabad see how the investor’s gold is turning into shards, and begin to gradually limit the areas of access, demanding new factories instead of new roads. And once with a high amount of contributions to the Treasury from their activities. Why else? China is not interested in such conditions due to the presence of significantly more profitable (read — cheap) alternatives in the form of Cambodia and India. Here, by the way, the Indo-Pakistani confrontation is in the hands of Beijing. To circumvent the main regional enemy, new Delhi agrees to rather sweet conditions.

It came to the point that the government of Pakistan was forced to start negotiations on a stabilization loan with the IMF. It appealed to China too. Moreover, it even received $ 3 billion, but not in the form of a grant and not under the standard for the IMF 2.7−3.5%, but at an average commercial rate. Without any discounts on strategic partnership.

It’s not because Islamabad as something special framed or China somehow uniquely greedy. All easier and more cynical. The accumulated discrepancies between the plan and reality is already significantly beyond the possibilities of purely tactical tools. There comes a moment of truth with a test of strength of the whole concept of the project “Belt and Road”.

It was originally intended to invest a lot of money in improving logistics and improving the efficiency of transport channels to key markets in Europe and America, while significantly reducing the cost of delivery of goods and receiving raw materials. Related “roadside businesses” in transit countries were mentioned and even estimated in the discussions, but they were not of key importance in the framework of the strategic idea as a whole. They were just a nice added bonus, increasing the attractiveness of the project for local governments. The main income was planned from servicing transit flows.

In theory, everything had to work normally

The formation of the infrastructure provided for the loading of Chinese industry now, and transit revenues became not only a very long-term (at least until the last quarter of this century, and even before the next) external source of financial well-being of China, but also created the preconditions for obtaining new infrastructure orders.

Further, as once in Japan, South Korea, Singapore, Taiwan, the rapid growth of the middle class in transit countries, caused by this powerful expansion of the capacity of domestic markets, the further growth of demand for everything (including houses, roads and other benefits of civilization) and all this is completely confined to the industrial and financial block of China. Asia is turning into a new economic center of the world, and China is becoming the only center and unconditional hegemon in Asia.

But now it becomes clear that this is the way “to everyone’s joy” the process can not go. A major review of the strategy is required. Asia is already beginning to tear from the apparent overabundance of Chinese money. The territory and population it is large, but the actual purchasing power and scale of its economy is inferior to the Red dragon by orders of magnitude. Almost like a cat to an elephant. If the “Belt and Road” project continues in its current form, then within 3-5 years the potential for development will be simply chosen, Chinese investment from the development tool will inevitably turn into shackles of colonization.

And though China Civilization and ancient as the history of mammoths, but of experience in the construction of the colonies and control them from China is not quite the word. While the experience of the twentieth century clearly proves that with due perseverance and a high degree of economic exploitation by the metropolis, the colonies successfully impose on it the war of independence, which the metropolis consistently loses with serious losses for itself.

What is happening with Pakistan is an important bell indicating an increase in the risk of changing the attitude of neighbors to Beijing from friendly to negative. War, of course, will not go, but to start “expel investors” are quite capable. But whether the Chinese leadership, and most importantly-will be able to “protect investment” for decades to fight with the guerrillas, for example, in the jungle of Borneo — the question is more than interesting.

So there is every reason to expect serious changes in the Chinese strategy of the “Belt and Road”. However, to predict what they will be, today is impossible. But they will be for sure, as Beijing simply has no other option.

The post CHINESE PROJECT “BELT AND ROAD” SERIOUSLY STALLED IN PAKISTAN first appeared on Global Policy.

Thus, the authorities want to maintain the pace of economic growth, which in the third quarter slowed to a ten-year low. Reducing the tax burden will support consumers, and this will move the economy forward. In addition, it will allow the Chinese economy to better resist American sanctions and protect it from external shocks.

The new plan involves an extensive program of tax deductions for different needs. On average, you can get from 1 thousand yuan (144 dollars) to 2 thousand yuan per month. The new rules should come into force on January 1, 2019. There are five main benefits:

1. Education tax deduction

Taxpayers can claim RMB 12,000 per year as compensation for the cost of each child’s education and 3 600 — 4 800 RMB compensates for the cost of their own education.

2. Tax deduction for support of elderly parents

The amount of deduction to support parents over the age of 60 will be 24,000 yuan per year. The money will be equally divided between brothers and sisters.

3. Rent reimbursement

The deduction for rental housing will be 800 yuan for residents of small towns, 1,000 yuan for medium — sized cities and 1,200 yuan for large cities.

4. Compensation of expenses on the mortgage

Interest deductions on mortgage loans will amount to 12,000 yuan per year and will affect couples buying a home for the first time.

5. Medical tax deductions

Taxpayers can qualify for a 60,000 yuan a year, if their costs exceeds 15 000 yuan after the coverage of national health insurance.

How much would that help?

Nomura analysts suggest that GDP may lose 1% in the short term due to the new tax rules. However, this will increase the growth rate of consumer demand by more than 0.2% and the annual GDP growth rate by 0.1%.

Lower taxes in China is not the first time

The authorities are carrying out a large-scale tax reform, reducing the burden on citizens and on business. For example, tax reform was announced in the summer. The threshold of annual income from which a citizen had to pay the minimum income tax of 3% increased. If earlier it was 6.3 thousand dollars, now-9 thousand dollars. Thus, if an employee will receive less than 9 thousand dollars a year, he does not have to pay income tax, which should support the poorest citizens.

That’s not all: since may 1, 2018, China has lowered VAT rates. It was reduced from 17% to 16% in the manufacturing sector and from 11% to 10% in the construction, transport, agriculture and telecommunications sectors. In addition, the list of micro-enterprises whose work was not subject to VAT was significantly expanded. If before the tax was not levied on companies whose annual sales did not exceed 500 thousand yuan (80 thousand dollars), then from may 1, the bar was raised to the level of sales of 5 million yuan.

All this is necessary to stimulate local business to increase production, to win in competition with foreign companies, and to give the population the opportunity to buy more goods and services, because this is the basis of economic growth and development of any country.

The post TAXES IN CHINA FOR CITIZENS WILL MAKE EVEN LOWER first appeared on Global Policy.

Beijing’s activity is of concern to Brussels and the EU member States. European leaders, including German Chancellor Angela Merkel and French President Emmanuel Macron, called to develop a unified strategy to reflect the ever-growing offensive of China. All Europeans are wary of Chinese expansion, although on the periphery calls for vigilance from Berlin, Paris and Brussels are met with a rather cool reception.

After analyzing the data on 678 already completed or still in the process of executing transactions in 30 European countries in 2008-18, Bloomberg concluded that despite Berlin’s calls to carefully check each transaction and, if necessary, immediately put an insurmountable barrier Germany is inferior in the number of agreements with Chinese companies concluded over the past decade, and even then only symbolically the UK, which in a year should finally leave the European Union. A German company in 2008-18. we concluded 225 deals with Chinese partners for a total amount of 20.33 billion dollars, and the British – 227. However, the British business has a much larger volume of transactions – $ 70.6 billion. The largest transactions also vary significantly in size: in the UK this is the acquisition by Aluminum Corp. of China a major stake in Rio Tinto 14.1 billion (2008), and in Germany – buy Midea Group, the German company KUKA for $ 4 billion (2016). In third place in the number of transactions – France with 89 agreements totaling $ 13.47 billion. France gives quite a bit Italy – 85 transactions 31,29 billion. In total, more than half of Chinese investments are in the five largest economies of the Old World.

The most active Chinese businessmen behaved in the Old World in 2016

That year, for example, the largest deal was announced: ChemChina announced the acquisition of the Swiss fertilizer producer Syngenta AG for $ 46.3 billion. In total, over 10 years, Chinese companies have spent $ 255 billion on the acquisition of European companies. At the same time, the Chinese acquired about 360 European companies, including such large ones as the Italian tire manufacturer Pirelli or the Irish company for renting Avolon aircraft. In addition, the Chinese business partially or wholly owned in the Old world at least 4 airports, 6 Maritime ports, wind power plants no less than 9 countries and 13 football clubs.

Most of the Chinese assets in London, where companies from China owned in the main financial district-city more than a dozen high-rise office buildings.

As for the sectors of the economy that receive the greatest attention of Chinese businessmen, the chemical industry is leading by a large margin, which accounted for 48.8 billion dollars in 2008-18. $ 25.9 billion was invested in traditional energy and $ 23.9 billion in real estate. The European financial system attracts Chinese people less strongly, and is only in seventh place. China’s business has invested $ 14.3 billion in banks and financial institutions of the Old World.

More than 670 Chinese companies, including Hong Kong, invested in Europe in 2008-18. Of these, about a hundred are wholly or partly owned by the state. They accounted for 162 billion dollars (63%). 8 of the 10 most active buyers in the Old world belong to the state (China Investment Corp. – 24,2 billion, Aluminum Corporation. of China – 14.1 and Silk Road Fund Co. – 10.5). At least 30 Chinese companies buying assets in Europe are owned by provincial or County governments.

In conclusion, the authors of the study report that Chinese companies continue to be actively interested in European assets. Their plans include many deals that have not yet been officially announced. This includes the construction of nuclear reactors in Romania and Bulgaria, the purchase of a container terminal in Croatia, the construction of a port in Sweden and a railway between Belgrade and Budapest, and the absorption of the Czech automaker Skoda, and much more.

The post CHINA HAS BOUGHT UP MOST OF EUROPE first appeared on Global Policy.

Very often there come businessmen and receiving, harmony, perhaps even in writing, I believe that the job is done. But the Chinese don’t live like that. And even if they agreed with you on some issues, it does not mean anything. The Chinese live in a world of change. They do not deceive you – they are just set to follow a more interesting proposal, and if it appears, all the arrangements are gone.

This is determined by correlative thinking. Another feature of Chinese business psychology is strategic thinking. Or – in other words-the peculiarity of negotiating with the help of tactics of tricks and soft power.

The Chinese know how to wait. They know how to wait until someone else’s business weakens

CHINA HAS BOUGHT UP MOST OF EUROPE

For example, several large acquisitions by Chinese Western corporations or significant shares in these corporations over the past year. All transactions were carried out at the very moment when corporations began to have problems. According to the academician, Chinese businessmen carefully monitor what is happening in interested corporations and as soon as the company begins to “roll” – make an offer to buy.

The word ” Yes ” in Chinese adverbs reflects about 20 different meanings and not one of them n means consent.

Yes, they say Yes, they nod, they seem to agree, but this is out of politeness, this does not mean that they agree with you in the sense in which consent is not understood by Chinese business.

Another cornerstone of Chinese culture is the family matrix

It’s about the fact that starting a business, the Chinese tend to include you in the family, it is very important for them to build you into their hierarchy. That is why the Western businessman has to spend six to twelve months on social events – to lead to anything not binding “empty” conversations before any agreement will be concluded.

Today in China, a new generation of managers who do not want to be faithful to the old traditions is gaining more and more power and influence.

In relation to foreign business, these managers behave much more aggressively and cheeky than the British or Americans in Hollywood movies. We must understand that we are dealing with a generation of extremely cynical and tough pragmatists.

The origins of this behavior lie in part in the ancient culture of China

It is known that the concept of culture for the Chinese means “Chinese culture”. Confucius also said that barbarians – that is, foreigners – should not be treated as Chinese.

The Chinese are not afraid that their culture will disappear. It is impossible to imagine that Oswald Spengler appeared in China and wrote “the Decline of Europe”. They have no problem with multiculturalism and migrants.

Today, the middle Kingdom is experiencing a crisis, which is associated with the fact that the previous model of lending to planned and unprofitable enterprises has exhausted itself. Economic growth has slowed. To” stay in place”, China needs to develop aggressively, pursuing a neo-colonial policy, absorbing business in other countries and exporting capital from there. In China, problems with aging population, huge external debt, stratification in income.

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